Cryptocurrency

A cryptocurrency is a digital asset designed to work as a medium of exchange, which uses cryptography to secure its transactions, to control the creation of additional units and to verify the transfer of assets.

Cryptocurrencies are used mainly outside the existing banking and governmental institutions and are exchanged over the internet. Cryptocurrencies use decentralised control through distributed consensus, rather than a centralised banking system.

The first decentralised cryptocurrency, bitcoin, was created in 2009 by Satoshi Nakamoto. Bitcoin was then followed by other currencies using a variety of cryptographic hash functions.

The legal status of cryptocurrencies varies from country to country and is still being defined by many. The apparent value of cryptocurrencies is also a matter of concern, due to huge volatility and oscillations. And it still unclear how cryptocurrencies do a better job than existing currencies.